HomeMy WebLinkAbout86-06 resolution 86-06
A RESOLUTION OF THE CITY COUNCIL OF THE
TOWN OF LOS ALTOS HILLS AUTHORIZING
PRE-TAX PAYROLL DEDUCTION PLAN
FOR SERVICE CREDIT PURCHASES
(CONTRIBUTION CODE 14)
WHEREAS, the Board of Administration of the California Public Employees' Retirement System
(Ca1PERS) at the April 1996 meeting approved a pre-tax payroll deduction plan for service credit
purchases under Internal Revenue Code (IRC) section 414(h)(2); and,
WHEREAS, the Town of Los Altos Hills (Employer Code 0690)has the authority to implement the
provisions of IRC section 414(h)(2) and has determined that even though implementation is not
required by law, the tax benefit offered by this section should be provided to those employees who
are members of Ca1PERS; and,
WHEREAS, the Town of Los Altos Hills elects to participate in the pre-tax payroll deduction plan
for all employees in the following Ca1PERS Coverage Group(s):
All Miscellaneous Coverage Groups
NOW,THEREFORE,BE IT RESOLVED:
I. That the Town of Los Altos Hills will implement the provisions of IRC section 414(h)(2)by
making employee contributions for service credit purchases pursuant to the California State
Government Code on behalf of its employees who are members of Ca1PERS and who have made
a binding irrevocable election to participate in the pre-tax payroll deduction plan. "Employee
contributions" shall mean those contributions reported to Ca1PERS which are deducted from the
salary of employees and are credited to individual employee accounts for service credit purchases,
thereby resulting in tax deferral of employee contributions.
II. That the contributions made by the Town of Los Altos Hills to Ca1PERS, although designated as
employee contributions, are being paid by the Town of Los Altos Hills in lieu of contributions by
the employees who are members of Ca1PERS.
III. That the employees shall not have the option of choosing to receive the contributed amounts
directly instead of having them paid by the Town of Los Altos Hills to Ca1PERS.
IV.That the Town of Los Altos Hills shall pay to Ca1PERS the contributions designated as employee
contributions from the same source of funds as used in paying salary, thereby resulting in tax
deferral of employee contributions.
V. That the effective date for commencement of the pre-tax payroll deduction plan cannot be any
earlier than the date the completed resolution is received and approved by Ca1PERS.
VI.That the governing body of the Town of Los Altos Hills shall participate in and adhere to
requirements and restrictions of the pre-tax payroll deduction plan by reporting pre-tax payroll
deductions when authorized by Ca1PERS for those employees of the above stated Coverage
Group(s) who have elected to participate in this plan.
PASSED AND ADOPTED by the governing body of the Town of Los Altos Hills this 14 day of
September , 2006.
BY: 1Mayor 444-P4-1"-tt
ATTEST: Ku,
City Clerk
RETURN ADDRESS:
Town of Los Altos Hills-Employer Code 0690
26379 Fremont Road
Los Altos Hills, CA 94022
*********************************************************************************
FOR CALPERS USE ONLY
Pre-tax payroll deduction plan effective date:
Approved By: Title:
MEMBER SERVICES DIVISION, Service credit section-Unit 830